Tariffs - Easier to impose than measure
By Bolaji Ojo
What’s at stake: Electronics makers have so far succeeded in convincing President Donald Trump to spare them as he wages a war on America’s trading partners using the threats of tariffs on exports to the United States. With the chip market being such an integral part of the global economy, the tariffs will eventually impact the industry. Chipmakers concerned about the uncertainties resulting from the tariffs and tariff threats wonder if there is a permanent exit ramp for them.
Donald Trump’s return to aggressive tariffs on other countries’ exports to America has reignited debate in the technology market with semiconductor executives wondering if or when the sector will be at the receiving end of punitive measures. Some say uncertainties trail their operations as they engage in hit-or-miss dodgeball maneuvers with America’s president.
Capital expenditure planning is taking a hit, according to industry observers. Although most chipmakers are focused on daily operational activities, decisions on long-term investments are being impacted by the cloudy outlook injected into the business by the tariff threats as well as growing unease about the geopolitical squabbles that have intensified in recent years.
With a new round of tariffs targeting semiconductors and related electronics, industry leaders, investors, and policymakers are asking: Will semiconductor suppliers find ways to dodge these tariffs, or is the global chip supply chain about to face a seismic shock?